The Bookkeeper’s Dictionary: Jargon You Pretend To Know - Part II
The Acronyms
Just when you thought you were getting the hang of bookkeeping terms, the alphabet soup arrives.
GST. EOFY. P&L. COGS. It’s like everyone in finance agreed to speak in code and forgot to send you the decoder ring.
In Part 1, we covered the everyday words that sneak into your reports and leave you second-guessing what they actually mean. (If you missed it, catch up here.)
Now it’s time to unravel the acronyms – those bite-sized bundles of letters that get tossed around in emails, reports, and tax time reminders like you definitely know what they mean.
Spoiler: most business owners don’t. And that’s totally fine.
So here’s Part 2 of your friendly, no-fluff guide to making sense of all those finance acronyms you keep hearing but never had properly explained.
SO let’s get decoding.
EOFY
[ee-oh-eff-why] acronym
End of Financial Year
That special time when we tie up the financial loose ends, finalise reports, and maybe shed a tear over that one missing receipt. For most New Zealand businesses its 31st March.
Basically: your business’s version of New Year’s Eve, but with spreadsheets.
GST
[jee-ess-tee] acronym
Goods and Services Tax
A 15% tax added to most goods and services in NZ. You’re collecting it on behalf of the government, essentially pre-paying tax for your customers when they buy from you.
You track it, report it, and pass it on to the IRD.
It feels like your money… but it’s really just stopping by on its way to Wellington.
P&L
[pee and el] acronym
Profit and Loss Statement
A report showing how much you’ve earned, how much you’ve spent, and whether there’s anything left at the end.
If the P is bigger than the L, you’re winning.
COGS
[kogz] acronym
Cost of Goods Sold
The direct costs of delivering your product or service. Think ingredients, materials, or wholesale stock.
If you sell cupcakes, this is flour, sugar, icing… not the Spotify subscription you play in the background
IRD
[eye-ar-dee] acronym
Inland Revenue Department
New Zealand’s tax authority. They want your GST, your PAYE, and your prompt payments.
Not known for their sense of humour.
PAYE
[pay-ee] acronym
Pay As You Earn
The system where tax is deducted from employee wages before it even hits their bank accounts.
As a business owner, you collect it and pass it on to the IRD.
Not optional. Definitely not forgettable.
DED
[dee-ee-dee] acronym
Deductions (as part of PAYE reporting)
The total amount of tax and compulsory deductions (like PAYE, student loans, KiwiSaver, child support) that you withhold from your employees’ pay and send to the IRD.
It’s part of your PAYE filing – showing what was deducted and where it’s going.
Think of it as doing your staff’s adulting for them
ROI
[ar-oh-eye] acronym
Return on Investment
How much value you get back from what you spent.
If you spend $1,000 on ads and make $3,000 in sales, that’s ROI magic.
Understanding the Acronyms Is Helpful, But You Don’t Have to Do It Alone
Look, no one starts a business because they’re dying to decode acronyms like PAYE or COGS. But understanding what they mean (even just a little) gives you more confidence, more clarity, and way fewer “what the heck is this” moments at tax time.
And the best part? You don’t have to figure it all out on your own.
If your reports still read like alphabet soup, I’m here to help. Whether it’s GST returns, PAYE filing, or just getting your P&L under control, I’ve got your back.
Book a free 1 on 1 consultation and we can turn the finance-speak into something that actually makes sense for you.
